{"id":103894,"date":"2025-08-30T23:24:08","date_gmt":"2025-08-30T23:24:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/103894\/"},"modified":"2025-08-30T23:24:08","modified_gmt":"2025-08-30T23:24:08","slug":"nvidia-boss-shrugs-off-tech-bubble-fears-sales-and-profits-soar-but-shares-dip-over-concerns-that-ai-craze-is-overdone","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/103894\/","title":{"rendered":"Nvidia boss shrugs off tech bubble fears: Sales and profits soar – but shares dip over concerns that AI craze is overdone"},"content":{"rendered":"

By JOHN-PAUL FORD ROJAS, DEPUTY BUSINESS EDITOR<\/a> <\/a> <\/p>\n

Updated: 17:07 EDT, 28 August 2025 <\/p>\n

Nvidia shares fell yesterday, despite the chip giant posting better-than- expected financial results and its boss declaring it ready to cash in on a multi-trillion dollar artificial intelligence (AI) boom.<\/p>\n

The stock slipped by nearly 3 per cent in early trading, knocking more than \u00a390billion off its valuation, amid jitters about whether markets are heading for a tech crunch and worries about sales in China.<\/p>\n

It later partly recovered to a figure 0.5\u00a0per cent lower.<\/p>\n

Nvidia\u2019s second-quarter results, published late on Wednesday, beat analyst expectations with profit of \u00a319.5billion, up 59\u00a0per cent year-on-year, and revenue of \u00a334.5billion, up 56 per cent.<\/p>\n

Chief executive Jensen Huang dismissed concerns about an end to a surge in spending on the AI chips that have fuelled its rapid growth.<\/p>\n

\u2018A new industrial revolution has started,\u2019 he said, adding: \u2018The AI race is on.\u2019<\/p>\n

\"Chip <\/p>\n

Chip shop: Nvidia boss Jensen Huang (pictured) dismissed concerns about an end to a surge in spending on the AI chips that have fuelled its rapid growth<\/p>\n

Huang said Nvidia expects companies to spend up to \u00a33trillion on AI infrastructure by the end of the decade.<\/p>\n

Yet the bullish update failed to drive a further rally in the shares, which have nearly doubled in value since the start of April.<\/p>\n

And the wider US stock market, which has been buoyed by the AI boom, saw choppy trading. The tech-heavy Nasdaq initially fell before recovering ground and it was a similar story for the S&P 500 and Dow Jones.<\/p>\n

Nvidia\u2019s slide was attributed to a third-quarter sales forecast that excluded revenue from China, a market which has been caught up in political tensions between Washington and Beijing.\u00a0<\/p>\n

Huang has struck a deal with US president Donald Trump for export licences to China in exchange for handing over 15\u00a0per cent of sales of AI chips to the country to the government.<\/p>\n

Nvidia\u2019s value has risen tenfold over the past two-and-a-half years, turning it into the world\u2019s most valuable company, worth more than \u00a33trillion.<\/p>\n

It has been the biggest winner in a stellar rally for tech giants involved in the AI race. Yet concerns have grown recently that investor enthusiasm for AI may have been overdone.<\/p>\n

Sam Altman, boss of ChatGPT maker OpenAI, recently suggested the market was in a bubble, with investors \u2018over-excited about AI\u2019.<\/p>\n

Dan Coatsworth, investment analyst at AJ Bell, said yesterday: \u2018AI demand is not the problem for Nvidia.<\/p>\n

\u2018It\u2019s more how politics has got in the way of its grand ambitions for global domination. The company is stuck between a rock and a hard place.\u00a0<\/p>\n

Nvidia has technology that countless companies are queuing up to buy, yet the US trade war has made it difficult to sell whatever it wants into China.\u2019<\/p>\n

Thomas Hayes, chairman at Great Hill Capital, said: \u2018[China] is a big part of their business and until that\u2019s resolved, there\u2019s going to be a bit of an overhang on what they can do in terms of guidance and what they can project in terms of growth.\u2019<\/p>\n

But Vivek Arya, research analyst at the Bank of America, advised clients in a note to \u2018ignore China noise\u2019.<\/p>\n

\u2018We believe it remains solidly positioned to maintain its 80 per cent-plus share in the fastest-growing and most attractive global AI infrastructure buildout,\u2019 Arya said.<\/p>\n

He said that while the Chinese market \u2018remains an uncertainty\u2019, this would be \u2018more than offset\u2019 by the strength of demand in the rest of the world.<\/p>\n

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\n Nvidia boss shrugs off tech bubble fears: Sales and profits soar – but shares dip over concerns that AI craze is overdone<\/p>\n